Ignoring a lawsuit in Maryland can result in a default judgment. Unfortunately, many defendants only realize the seriousness after enforcement begins.
So what actually happens after default judgment enters?
What Is a Default Judgment?
A default judgment occurs when a defendant fails to respond within the required timeframe. As a result, the court may enter judgment in favor of the plaintiff without a trial.
Importantly, the judgment may include:
Principal balance
Interest
Court costs
Attorney’s fees
What Can Creditors Do After Judgment?
After obtaining judgment, creditors may pursue collection methods such as:
Bank account attachment
Property liens
Because judgments can remain enforceable for years, ignoring the issue rarely solves the problem.
Can a Default Judgment Be Reopened?
In certain circumstances, yes.
For example, defendants may file motions to vacate if:
Service was improper
Excusable neglect occurred
A valid defense exists
However, courts evaluate these motions carefully. Therefore, acting quickly improves the chances of success.
Why Early Action Matters
Although reopening a case is sometimes possible, preventing default in the first place is usually easier. Responding to the original summons preserves more options.
For a complete breakdown of the Maryland debt lawsuit process, review our step-by-step legal guide.
Final Thoughts
A default judgment does not mean all options disappear. Nevertheless, enforcement tools like garnishment can begin quickly.
Maryland attorney Ben Akech assists clients in evaluating post-judgment options and determining whether reopening or negotiating resolution is appropriate under the circumstances.
Frequently Asked Questions: Understanding Default Judgments in Maryland
Q: What is a default judgment in Maryland?
A: A default judgment is a binding court order entered against a defendant who fails to respond to a lawsuit within the legally required timeframe (typically 30 days after service of process for Maryland residents, or 60 days for out-of-state defendants). Because the defendant did not file an answer or appear, the court rules in favor of the plaintiff and grants the relief or monetary damages requested.
Q: Can a defendant challenge or undo a default judgment?
A: Yes, but strict time limits apply under Maryland Rule 2-613 (District Court Rule 3-613):
Motion to Vacate an Order of Default: A defendant has 30 days from the entry of the order of default to file a Motion to Vacate. The motion must explain the reason for missing the initial response deadline and outline a legitimate legal or factual defense to the underlying lawsuit.
If the 30-day window has passed: Once a final default judgment is entered, it can generally only be vacated under rare conditions, such as proving fraud, a lack of court jurisdiction, or improper service of process.
Q: How does a creditor collect on a default judgment in Maryland?
A: Once a final default judgment is signed, the plaintiff becomes a judgment creditor and has several legal mechanisms to enforce the ruling and recover money:
Bank Account Garnishment: The court can issue a Writ of Garnishment served directly on the debtor’s bank, freezing account balances up to the amount of the judgment plus statutory post-judgment interest and court fees.
Wage Garnishment: A court order requires the debtor’s employer to withhold a percentage of their paycheck each pay period until the debt is paid in full.
Property & Real Estate Liens: In Maryland, a money judgment automatically acts as a lien on any real estate owned by the debtor in the county where the judgment is indexed. This prevents the debtor from selling or refinancing the property without paying off the debt.
Post-Judgment Interrogatories & Oral Examinations: Creditors can legally force the debtor to answer written financial questions or appear in court for an oral examination under oath to disclose bank accounts, employment details, and physical assets.
Q: Can a debtor protect their income or assets from collection?
Yes. Maryland law provides specific legal exemptions to safeguard essential assets:
Wage Exemption Limits: Maryland restricts wage garnishment amounts to ensure a minimum threshold of earnings remains protected under state and federal formulas.
Statutory Property Exemptions: Debtors can file a Motion for Release of Property from Levy/Garnishment within 30 days of a freeze to claim statutory exemptions (e.g., up to $6,000 in cash or bank accounts under state exemption caps).
Q: How long does a default judgment remain enforceable in Maryland?
A money judgment in Maryland is valid and enforceable for 12 years from the date of entry. Before the 12-year period expires, the judgment creditor can file a notice to renew it for another 12 years, meaning an unresolved default judgment can follow a debtor for decades if left unaddressed.